Julia Barnard

Partner

Special Purpose Vehicles

It is a difficult decision when it comes to extracting funds, as Income Tax and National Insurance rates are prohibitive. Many business owners have moved towards dividends but the tax rate is still up to 31 per cent and the company receives no tax relief on the amounts paid out.

However, you may be able to extract funds at capital gains tax rates. While it is only appropriate for one-off projects, such as for example property development, it may well be commercially desirable.

At present an individual is entitled to claim up to £10m of entrepreneurs’ relief and pay a tax rate of 10 per cent. One-off projects can be structured in such a way to take full advantage of these lower rates.

Our team has a wealth of experience in this area, particularly in the property and construction sectors which are suitable for this type of planning.

At fcf we like to help our clients plan ahead. Tax is a highly complex area with many potential pitfalls and the same commercial transaction can lead to very different tax results.

By planning ahead, we give clients the opportunity to take advantage of the most beneficial tax rates.

Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by The Institute of Chartered Accountants in England and Wales.Registered in England and Wales as a Limited Company under number 09477399